Reinventing the Millennium

The atmosphere in the roadshow conference hall became... cheerful because of Mr. Fang's answer to the value of Xiangjiang.

If we say that at first many Xiangjiang investors were in a mood to watch the excitement, then they became solemn as they witnessed the influx of mainland power, and then they were eager to try when the president moved the question session, then now it is the other side who always comes up with a mask. Dyer Triangle came to respond to the question with admiration.

This person who can compete with the Li family is indeed not as reckless, simple, and narrow-minded as the media gossips make him out to be.

Mundell's Triangle, also known as Mundell's Impossible Triangle and Trilemma. When talking about this, we often have to talk about the classic M-F model and IS-LM-BP model. But today, Fang Zhuo's intention in mentioning it is to use this framework. Let’s explain the value of a window from the perspective of economic theory.

Monetary policy independence, free capital flow, and exchange rate stability, American economist Paul Krugman said that a country can only choose two out of three.

According to this statement, there is no doubt that the mainland has monetary policy independence and exchange rate stability.

Xiangjiang is about stable exchange rates and free flow of capital.

After drawing the triangle, Fang Zhuo pointed at one corner with his finger and said "free flow of capital". He was saying that two out of three in Hong Kong, which is different from the mainland, is a powerful supplement to the mainland's economic development.

Mainland China: That’s right, I didn’t choose “free flow of capital”, but I still have the place of Xiangjiang.

Xiangjiang: That's right. I have pegged the exchange rate of the Hong Kong dollar to the US dollar and will passively follow the Fed's interest rate hikes or cuts. But I have the mainland behind me.

Just looking at the Mainland or Xiangjiang, they are two of the three choices.

But looking at China as a whole, Xiangjiang, the international financial center, is a window to the outside world. Its "free flow of capital" has allowed China to almost realize the three elements of the Mundell Triangle, which is an explanation of important values.

As confirmation, at this moment, many Xiangjiang investors have thought of the data mentioned by President Li in his previous speech.

——In 2005, the top ten companies that came to Hong Kong to go public and raise funds were all mainland companies.

——There are 335 mainland companies with shares in Hong Kong, accounting for 30% of Hong Kong shares.

——The total market value of Hong Kong stocks in 2005 was 8.26 trillion, and the total market value of mainland companies was close to 3.2 trillion, accounting for nearly 40%.

The international financial center attracts global capital, which not only brings prosperity to Hong Kong, but is also undoubtedly the primary market for mainland enterprises to raise international capital.

This answer to "Hong Kong's value" is completely expressed in just one sentence.

Fang Zhuo sat on the stage and noticed that many people smiled at him, and he smiled back. They were still very smart and talented.

As for those investors who have thoughts or even doubts in their eyes, they have nothing to say, just don’t think at the same frequency.

Fang Zhuo reached for the tea cup and continued to respond to the question: "The threat of the hollowing out of this industry..."

He took a sip of tea and happened to see President Li looking at him with doubts in his eyes, as if to say - is this all about the value of Xiangjiang?

Fang Zhuo was slightly startled, President, why do you look at me like this?

He quickly turned away his disrespectful eyes and said: "Actually, you should not be asking here about the threat of industrial hollowing out. In other words, you all have an answer in your mind."

"Hong Kong's current four pillars are finance, trade and logistics, professional and industrial and commercial services, and tourism. These are all developed from the original solid manufacturing industry."

"I think the United States is a good comparison. I spend a lot of time in the United States, and there are often concerns about the hollowing out of industry and finance. However, the United States and Hong Kong are different."

"Although it has the trend or phenomenon of industrial hollowing out, it still captures many advanced technologies and core technologies. Take Boeing as an example. Its aircraft are assembled all over the world, but it still makes the largest profits."

"Hong Kong is different."

Fang Zhuo said: "I have noticed that the Hong Kong administration has paid attention to this issue. The previous policy address in 1998 mentioned that it will become the world's leading city in the development and application of information technology, especially in e-commerce. and software development'."

“This is obviously Xiangjiang’s industrial self-salvation.”

“The subsequent creation of the ‘Hong Kong Silicon Valley’ Cyberport by Mr. Li Zekai was also a response effort.”

"It's just a pity that this year is already 2006. After 8 years, the development and transformation of urban industries does not seem to be optimistic."

Fang Zhuo shook his head and started to answer the last question about GDP in the same manner, pondering: "The GDP of inland cities..."

However, this time there were questions from investors below, and many people raised their hands.

Fang Zhuo didn't mind being interrupted and casually ordered a beautiful one.

"Mr. Fang, you talked about the hollowing out of industries in Xiangjiang. How do you think we should deal with this threat?" Beautiful Investor asked seriously.

Although I had prejudices in my heart before, but seeing that this person really has insights, those hard-to-express emotions have long since disappeared.

The Hong Kong Roadshow is a very interesting place. Sometimes, too much emphasis is placed on the performance of roadshow executives and the company itself is ignored.

A very powerful company once came to Hong Kong for a road show, but the founder was not good at speaking and the company suffered a cold reception.

Similarly, when Fang Zhuo showed such wonderful grace, investors couldn't help but laugh.

"I don't really want to talk about this issue, because many issues are not the result of talks. They can't be changed by you asking me here today and just a few words." Fang Zhuo was relatively straightforward, but still expressed his views, " But really speaking, I think there are still some sacrifices and pains to face the challenge.”

He took a sip of tea, moistened his throat, and said: "Xiangjiang has not encountered similar opportunities in the past. I will not comment on Mr. Li Zekai's Cyberport. As far as I know, Mr. Zhang Rujing, the founder of SMIC, He had been to Xiangjiang when he was selecting the site. At that time, there was a 'Silicone Port Project' here, so why was it not completed in the end?"

"SMIC settled in Shanghai, and today, in just a few years, it has become one of the largest wafer foundries in the world, driving a very outstanding semiconductor industry in East China."

"In my opinion, it is a pity that Xiangjiang missed such a good opportunity for transformation."

"It's true that there are people who can see the problem, and there are people who can solve the problem, but in the end it can't be solved. It doesn't make much sense for us to sit here and talk about this today."

Fang Zhuo's outspokenness silenced the scene.

The person who originally wanted to ask a question did not raise his hand again.

Fang Zhuo waited and observed for a while, then returned to his answer: "As for the GDP development of mainland cities, they still have a long way to go. Catching up with the scale of Hong Kong is a long process, because I have confidence in the country's economic development, so , I believe I can see the day when the GDP of mainland cities exceeds that of Hong Kong."

After saying this, he suddenly smiled: "After all, I am still quite young, but just because I am young, I don't know if it will be too long."

Because I am young, I can see it even if it seems too long.

The atmosphere of silence in the conference hall became looser again.

Fang Zhuo nodded to the audience, indicating that he had finished answering, and then turned off the microphone.

Talk about the value of Hong Kong, discuss the hollowing out of industries and respond to criticism, and express confidence in economic development.

As Mr. Fang finished his answer, everyone was pondering or thinking, and for a while no one raised their hands to ask questions.

Fang Zhuo slowly drank tea, flipped through documents, and waited for the road show to continue.

Manager Li glanced at Mr. Fang, a little hesitant to clear his throat on the microphone.

Fortunately, investors still cherish this rare communication opportunity and quickly responded and continued to ask questions.

However, the problem that went from small to big returned to small again, and everyone’s questions became the business of Bank of China.

Fang Zhuo did not answer any more questions and just listened quietly to the answers of the Bank of China executives. President Li became more calm with the buffer in the middle.

The roadshow was delayed by an hour from its scheduled end.

Generally speaking, the performance of the Bank of China team can be considered orderly.

When the announcement was over, many investors immediately stood up and rushed over. Some came to greet Mr. Li and exchange business cards, but more actually came to chat with Mr. Fang.

After dealing with the group of investors in Xiangjiang, the mainland company executives who were invited to help also said goodbye to Mr. Li and Mr. Fang. In fact, everyone was very busy. Only a few of them came to Xiangjiang on the sixth day of the Lunar New Year for vacation, and most of them were still traveling. Business.

President Li responded with a genuine smile, while Fang Zhuo expressed his gratitude to almost everyone without any scruples.

The targeting before the start of today's road show was quite obvious. We had made an appointment but suddenly broke the appointment. We arrived at the venue but had a tacit agreement to only take one seat and leave half of the room empty. Fortunately, there were no problems in the whole process.

It was not until 8:30 in the evening that everyone was arranged and the reporter answered additional questions, and then we could have dinner.

President Li had a small meal with Mr. Fang alone.

At this moment, he finally couldn't help but ask: "Mr. Fang, what's going on with the Mundell triangle?"

Fang Zhuo explained a bit, and put President Li's thinking frequency together with his own in more detail. He also talked about the American economist Paul Krugman, who once predicted that a financial crisis might break out in the Asian economy, and also said in 2001 Oil prices will skyrocket.

Also, Krugman recently called attention to the potential risks of skyrocketing and plummeting housing prices in the United States.

His remarks and judgments on housing prices were mentioned in the MIGA Fund's research report.

President Li listened carefully to Mr. Fang's explanation, and then he understood why many Xiangjiang investors had different attitudes.

Fang Zhuo got excited and talked about Modern Monetary Theory (MMT), saying that this needs to be understood critically.

Manager Li listened for a while and asked: "Mr. Fang, it sounds like you have studied these things?"

"No way, boss, I have a MIGA fund. At least I need to know how they are going to deceive me." Fang Zhuo said with a smile, "Before I was in New York, I specially asked an economics professor from Columbia University to teach me something. I just happened to use it today."

President Li praised: "Mr. Fang, you are so humble."

Just when Fang Zhuo wanted to be humble again, a call came in on his cell phone, but it was someone he had never contacted since he had saved his number.

Li Zekai.

Fang Zhuo showed the phone screen to his leader and saw the same surprised look in his eyes before he answered the call.

The reason why I have this number is because I met him last time when I came to Xiangjiang for Yike's road show.

"Mr. Fang, long time no see, you look even better in style." Li Zekai said.

"Mr. Li hasn't even seen me, how do you know he is more elegant?" Fang Zhuo said with a smile.

Li Zekai said with a smile: "I heard about the Bank of China road show and heard that Mr. Fang mentioned Cyberport. I think Mr. Fang may have misunderstood me. Cyberport has made a lot of administrative profits rather than losses. "

"Well, I believe this." Fang Zhuo said.

Li Zekai went on to explain why he believed Cyberport did not live up to expectations.

Fang Zhuo listened for a while and realized that he really called him just to explain Cyberport.

After the call ended, Fang Zhuo smiled at Director Li and said, "Superman specifically explained his Cyberport to me. I just had a few casual conversations, which is quite sensitive, but after all this chat, he even offered to treat me to a meal. nor."

President Li frowned: "Does the Li family still have a grudge?"

Fang Zhuo shook his head, not making any judgment, it didn't matter.

As the dinner came to an end, another unexpected phone call came in. It was from the administrative leader of Xiangjiang.

Fang Zhuo was a little strange. After communicating for a while, he found that the other party was explaining the complicated reasons for the failure of the Siport project. This time, the other party invited him to be a guest at the administrative side.

He talked about the content of this phone call with President Li again, and felt a little confused: "Is it an overreaction? I didn't talk too much, didn't it go too far? It shouldn't be considered a criticism, it's just a pity. "

Manager Li was quite meaningful: "Mr. Fang, is it possible that your influence is greater than you think?"

Fang Zhuo was stunned: "Is it just because I became a director of Bank of China?"

The two looked at each other and laughed.

Regardless of the reaction from Xiangjiang, the road show was considered a success.

Manager Li was in a good mood. He also talked about tomorrow's media interview arrangements and asked Mr. Fang for his opinion.

"Media interviews are all process-based things, step by step." Fang Zhuo said.

President Li asked: "I mean, why are you behaving like this today, Mr. Fang?"

Fang Zhuo thought thoughtfully and replied: "Leader, since the road show is okay, as long as there are no problems with media interviews, I don't have any special experience."

Manager Li nodded regretfully without forcing himself. People like Mr. Fang are indeed rare to see.

…

On February 6, before being interviewed by reporters, Governor Li saw the media reports on yesterday's Bank of China road show.

——Mr. Fang drew a triangle on the stage, and the investors smiled in the audience.

——The Bank of China road show was a great success!

——Mr. Fang criticized Cyberport and bluntly said that Hong Kong has lost the opportunity to transform!

——If it was Mr. Fang who came to Hong Kong in the first place, would the Silicon Harbor project be successful?

——Mr. Zhang left, but Mr. Fang stayed!

It's obviously a report on the Bank of China's road show, but it mentions Mr. Fang more than the Bank of China.

President Li looked at the latest Hong Kong media reports and sighed, this is indeed... Mr. Fang is more influential than he imagined.